Passenger vehicles' sales in India crossed the three million milestone for the first time in 2016-17, with the segment witnessing a growth of 9.23%.

For the fiscal ended March 2017, domestic passenger vehicles' (PV) sales were at 30,46,727 units, as against 27,89,208 units in the previous year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

On the sales performance, SIAM's deputy director, Sugato Sen, on Tuesday, while interacting with the media in New Delhi, said the year witnessed the highest sales of passenger vehicles, utility vehicles, motorcycles and scooters.

"In terms of passenger vehicles, we crossed the three million mark for the first time and the growth in PV sales is driven largely by demand for utility vehicles ahead of sedans and hatchbacks," Sen also said.

During the year, utility vehicle sales were at 7,61,997 units as against 5,86,576 units in the previous fiscal, a growth of 29.91%.

"This is the highest growth rate achieved by the UV segment after 2013-14 when it grew by 52%," Sen added.

SIAM's director general, Vishnu Mathur, said there is a readjustment happening in the Indian passenger vehicle market with demand for utility vehicles rising at a much faster rate ahead of conventional cars.

Domestic car sales during the year grew 3.85% to 21,02,996 units as against 20,25,097 units in the previous year. This was the lowest growth since 2014-15, when car sales rose by 5.09%.